Subscription and billing glossary
Introduction
This comprehensive glossary defines all billing-related terms used in the Platform. Use this reference to understand the specific terminology used in billing articles, reports, and user interface elements throughout the Platform.
In this article:
- Add-on Subscription
- Annual Billing
- Auto-Renewal
- Billing Cycle
- Billing Cycle Day
- Billing Frequency
- Billing Period
- Bundle
- Commitment Period
- Consumption-Based Subscription
- Correction
- Credit
- Cycle Fee
- Detailed Invoice Line Items
- Discount
- Effective Date
- Invoice
- Invoice Date
- Item Fee
- License-Based Subscription
- Monthly Billing
- One-Time Fee
- One-Time Subscription
- Parent Subscription
- Proration
- Purchase Fee
- Quarterly Billing
- Quantity
- Renewal
- Reservation
- Seat
- Subscription
- Suspension
- Term
- Triennial
- Usage Fee
- User License
- Vendor
Add-on Subscription
A Subscription that extends the functionality of another subscription and inherits the Billing Cycle of its Parent Subscription.
Annual Billing
A Billing Frequency where Customers are charged once per year for the full annual amount.
Auto-Renewal
The automatic extension of a Subscription at the end of its Term, creating a new Billing Cycle without requiring manual intervention.
Billing Cycle
The recurring time period between billing dates. For example, a subscription with billing on the 15th of each month has a billing cycle from the 15th of one month to the 14th of the next.
Billing Cycle Day
The specific day of the month when a new Billing Period begins and Invoices are generated.
Billing Frequency
How often a Customer is billed for a Subscription, such as monthly, quarterly, or annual. This can differ from the Commitment Period.
Billing Period
The specific timeframe covered by an Invoice or billing event. For Monthly Billing, this is typically a period of about 30 days.
Bundle
A collection of individual Subscriptions or services sold together as a single Offer, often at a Discount compared to purchasing components separately.
Commitment Period
The length of time a Customer agrees to maintain a Subscription, regardless of Billing Frequency. Common options include monthly, annual, and Triennial commitments.
Consumption-Based Subscription
A Subscription model where billing is based on actual usage of resources or services rather than a fixed number of Licenses. Also known as Usage-Based Subscription.
Correction
A charge type used to represent prorated adjustments, credits, or additional charges resulting from Subscription changes that occur mid-cycle.
Credit
A negative charge amount that reduces the total amount due on an Invoice, typically due to service changes, returns, or billing adjustments. Also known as Credit Note.
Cycle Fee
A charge type representing the recurring fee for a Subscription during its regular Billing Cycle.
Detailed Invoice Line Items
An Invoice display option that breaks down aggregated charges into individual line items that match the Vendor's billing events.
Discount
A reduction in the standard Price of a Subscription, which can be applied as a percentage or fixed amount.
Effective Date
The date when a Subscription change, such as adding Licenses or changing plans, takes effect for billing purposes.
Invoice
A document issued by the provider that lists the charges for Subscriptions and services during a Billing Period and requests payment.
Invoice Date
The date when an Invoice is generated in the system, which may differ from the Billing Cycle Day due to processing times.
Item Fee
A charge type used for License-Based Subscriptions that are not prepaid, similar to Cycle Fee but for prepaid license-based subscriptions.
License-Based Subscription
A Subscription model where billing is based on the number of User Licenses purchased, regardless of actual usage.
Monthly Billing
A Billing Frequency where Customers are charged each month for their Subscription services.
One-Time Fee
A charge type for non-recurring purchases that appear only once on an Invoice.
One-Time Subscription
A Subscription representing a single purchase rather than an ongoing service, with no recurring Billing Cycle.
Parent Subscription
A primary Subscription that may have Add-on Subscriptions attached to it. The parent subscription determines the Billing Cycle for any add-ons.
Proration
The process of calculating charges or credits for partial Billing Periods when Subscription changes occur mid-cycle.
Purchase Fee
The initial charge generated when a Subscription is first purchased, typically representing a prorated cost for the first Billing Period.
Quarterly Billing
A Billing Frequency where Customers are charged every three months for their Subscription services.
Quantity
The number of units, typically Licenses or Seats, included in a Subscription.
Renewal
The extension of a Subscription for another Term after the current term expires.
Reservation
A special type of Subscription, particularly in cloud services, where resources are reserved for a specific Term in exchange for discounted pricing. Also known as Reserved Instance.
Seat
A unit representing a User License in a Subscription. Adding or removing seats affects the Subscription Quantity and cost.
Subscription
An agreement to receive a Product or service for a defined period, typically with recurring billing.
Suspension
A temporary halt of a Subscription's services without cancellation, which may affect billing through prorated credits.
Term
The duration of a Subscription agreement, which may be monthly, annual, or longer. Also known as Term Duration.
Triennial
Referring to a three-year period, typically used for Commitment Periods in long-term Subscription agreements.
Usage Fee
A charge type for Consumption-Based Subscriptions, representing the cost of actual resource usage during a Billing Period.
User License
An entitlement that allows a specific user to access a Subscription service or Product.
Vendor
The original provider of a service or Product being resold through the Platform, such as Microsoft or Adobe.
Summary
This glossary provides comprehensive definitions of all billing-related terminology used throughout the Platform. Use this reference to ensure consistent understanding of subscription and billing concepts across articles, reports, and user interface elements.
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